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2019-11-19 CC Agenda - Additional Information related to Item #6EL SEGUNDO CITY COUNCIL AGENDA STATEMENT AGENDA DESCRIPTION: MEETING DATE: November 5, 2019 AGENDA HEADING: Public Hearing Consideration and possible action regarding an Ordinance amending Title 15 of the El Segundo Municipal Code to establish a Public Art or In -Lieu Fee Requirement and a Cultural Development Fund (otherwise known as a "Percent for Arts" fee). Fiscal Impact: Approximately $685,000 in public art and fee revenues per year. RECOMMENDED COUNCIL ACTION: 1. Receive and file presentation by Arts and Culture Advisory Committee and City staff; 2. Open public hearing; 3. Take testimony and other evidence as presented; 4. Introduce by title only and waive further reading of an Ordinance amending Title 15 of the El Segundo Municipal Code to establish a Cultural Development Fund and Cultural Development Fee; 5. Schedule second reading and adoption of the Ordinance for November 19, 2019; or 6. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: 1. Proposed Ordinance No. 2. El Segundo Planning Commission Resolution 2875 3. Percent for Arts/Art in Public Places Ordinances — LA County Arts Commission (2018) FISCAL IMPACT: Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A STRATEGIC PLAN: Goal: 1 Enhance Customer Service, Engagement, and Communications Objective: (a) El Segundo provides unparalleled service to internal and external customers Goal: 4 Develop and Maintain Quality Infrastructure and Technology Objective: (a) El Segundo's physical infrastructure supports an appealing, safe, and effective community Goal: 5 Champion Economic Development and Fiscal Sustainability Objective: (a) El Segundo promotes economic growth and vitality for businesses and the community 12 246 ORIGINATED BY: Melissa McCollum, Library Director MNk REVIEWED BY: Sam Lee, Director of Planning and Building Safety �¢ Ken Berkman, Director of Public Works Joe Lillio, Finance Director ii Barbara Voss, Deputy City Manager David King, Assistant City Attorney APPROVED BY: Scott Mitnick, City Manager O/ 4c SWL) 247 BACKGROUND On December 18, 2018, the City Council directed the Arts and Culture Advisory Committee (ACC) and staff to develop an art in public places proposal for City Council consideration. After soliciting input from community stakeholders, including comments and recommendations on appropriate exceptions and thresholds, an ordinance was drafted that established requirements for private developers to provide artwork on-site or pay an in -lieu fee to the City. The ACC and staff consulted with numerous stakeholders during the past year in the form of one-on-one conversations, presentations, and public meetings. Groups included the Chamber of Commerce's Government Affairs Committee and several City Committees, Commissions, and Boards, including the Economic Development Advisory Council, Planning Commission, Library Board of Trustees, Recreation and Parks Committee, Gateway Committee, and Senior Citizen Housing Board. The ACC and staff also spoke with independent artists, architects, developers, lawyers, art consultants, realtors, and policy managers during the development of this proposal. On July 16, 2019, the City Council held a public hearing to consider the proposed ordinance. The City Council directed the ACC and staff to revise the ordinance based on feedback provided during the meeting, including raising the building valuation threshold for the requirement and eliminating a maximum cap on contributions. The City Council continued the public hearing. The original draft of the ordinance made amendments to Title 3, which deals with revenue and finances. In the development of the ordinance it was determined that it is more properly located in Title 15 because courts have determined that this type of program is essentially a development standard and the fee is an in -lieu option. Once that determination was made, the ordinance was re -drafted and required Planning Commission review and approval. The Planning Commission approved Resolution 2875 during their meeting on October 10, 2019, and recommended 4-0 that the City Council adopt the ordinance establishing a public art or in -lieu fee requirement and a Cultural Development Fund in El Segundo. Highlights of the revised ordinance include: • Requirement applies to commercial and industrial development projects in El Segundo that have a building valuation of $2 million or more • To comply with the ordinance, a project would include a civic artwork on site valued at one percent of the project's building valuation • The developer may choose instead to contribute an in -lieu fee to the Cultural Development Fund valued at one percent of the building valuation • The Cultural Development Fund would be administered by the City of El Segundo, and will be managed and maintained for the sole purposes of: 1. Design, acquisition, commission, installation, improvement, maintenance, and insurance of artwork; and 2. Sponsoring or supporting artistic and cultural services, such as performances and experiences, including performing arts, literary arts, media arts, arts education, art events, temporary artworks, and festivals '0W ANALYSIS Thirty-six cities in Los Angeles County have enacted art in public places ordinances, including several high profile cities that are attracting new residents and creative industries. Examples include Beverly Hills, Culver City, Los Angeles, Manhattan Beach, Redondo Beach, Santa Monica, and West Hollywood. The County Board of Supervisors approved the first reading of a Percent for Art in Private Development Ordinance for unincorporated areas in LA County on July 23, 2019. In addition, six of the ten nominees for Most Business -Friendly City for 2019 have Percent for Arts Programs, including Bellflower, Lancaster, Norwalk, Monrovia, Pasadena, and Santa Fe Springs. A similar Cultural Development Program in El Segundo will create additional public access to the arts, help drive tourism and revenue to local businesses, contribute toward realizing cultural equity and inclusion, create opportunities for artists and art organizations in the community, and help grow the Creative Economy. El Segundo has an opportunity to grow as an arts destination in the Los Angeles region, reflecting its unique cultural composition and history as well as the influences of technology and local businesses on public spaces. Creative Economv Renorl The Creative Economy, including arts and culture, digital media, entertainment, product and toy design, and more, plays an important role in El Segundo. Highlights of the recent Creative Economy Report for the City of El Segundo prepared by Beacon Economics reports: r El Segundo's Creative Economy generated $3.3 billion in economic output in 2017 • Total employment supported by the creative economy in the City totaled 11,433 of which almost 6000 positions were supported directly by the creative industries w 262 El Segundo firms worked in creative industries, a 36% increase from 2008 to 2017 Related stakeholder interviews conducted by Beacon Economics demonstrated that the atmosphere, aesthetic, and authenticity of El Segundo appealed to businesses when looking for space as well as the high-quality, tight -knit, innovative, and collaborative creative community. Creative industry stakeholders also asked during interviews to be more intimately included in the City's planning, development, and beautification. One said, "Ask us. Ask artists to help beautify and plan the City of El Segundo, whether that's just painting sidewalks or deciding how to integrate beach access, artists can be tangibly helpful." The ACC believes the City of El Segundo should consider the Creative Economy when making policy decisions, such as the current proposal to create a Cultural Development Program. Cultural Development Program Goals The ACC identified six goals for how a Cultural Development Program could be used in the community to help support many of the City's strategic priorities, including enhancing customer engagement and communications, developing and maintaining quality infrastructure, and championing economic development. 1. Permeate the City with public art and programs to create a comprehensive community identity ►�V 2. Artistically enhance already -budgeted capital improvement projects 3. Advocate for art and cultural events on weekends to increase hotel occupancies 4. Award local excellence in commercial beautification and amenities 5. Stimulate a higher level of art engagement in schools and civic organizations 6. Contribute to achieving the "City Enjoyable" Percent for Arts rlrr in Pvblic Places Ordinance Comparisons within Los Aneeles t~ouniv. Percent for Arts ordinances and program management vary among cities. The proposed El Segundo Cultural Development Program requirement includes: a $2 million project threshold (no fees on projects valued below $2 million) a No fees on residential development a A 1% Fee on commercial and industrial construction and renovation a No cap (fee applies to full project value regardless of size) The $2 million building valuation threshold for the proposed fee is higher than any of the 36 jurisdictions in LA County with percent for arts ordinances (only the City of San Diego has a higher threshold in California at $5 million), and reflects El Segundo's goal to remain a "Business -Friendly City." In the following analysis of commercial and industrial permits issued during the past ten years, staff determined that a Cultural Development fee implemented for El Segundo projects with building valuation of $2 million or more would have impacted 15 projects per year and generated approximately $685,000 per year in public art and/or fees paid to the Cultural Development Fund. In contrast, the original proposed building valuation threshold of $500,000 would have generated $1 million and applied to 59 projects per year. Some examples of the types of projects valued around $2 million over the past several years are: a new 2 -story office building at 400 Duley Road ($2.OM); entire 15th floor tenant improvement and remodel at 100 N Sepulveda (PCH) ($1.9M); remodel of ground floor lobby and restrooms on 12 floors at 2260 E Imperial ($2.1M); and tenant improvement at credit union office at 2121 E Maple, including new walls, doors, lighting, air conditioning, and a generator ($2.5M). 250 Art Fee Threshold Comparison, 10 years (2008-2018) Permits Total valuation Yearly 1 % of yearly Permits over Proposed over threshold valuation over valuation over over threshold threshold 2008-2018 threshold threshold threshold per year $500,000 $1.08613 $108.6M $1,086,000 594 59 750,000 981 M 98.1 M 981,000 419 42 1,000,000 870M 87.OM 870,000 285 29 2,000,000 685M 68.5M 685,000 148 15 5,000,000 339M 33.9M 339,000 36 4 7,500,000 247M 24.7M 247,000 19 2 Some examples of the types of projects valued around $2 million over the past several years are: a new 2 -story office building at 400 Duley Road ($2.OM); entire 15th floor tenant improvement and remodel at 100 N Sepulveda (PCH) ($1.9M); remodel of ground floor lobby and restrooms on 12 floors at 2260 E Imperial ($2.1M); and tenant improvement at credit union office at 2121 E Maple, including new walls, doors, lighting, air conditioning, and a generator ($2.5M). 250 Based on the previous 10 years, an average of about $685,000 is expected per year. However, during period of economic expansion that number may be higher, and conversely, may be lower when construction activity declines. El Segundo is not immune to this type of fluctuation, but does tend to fare better than other local cities due to nature and diversity of our businesses and industries. The average estimated fees from this program are based on a period that included a severe downturn and consistent growth in the local economy and should be fairly representative of the average over the coming decade. The ACC also recommends not applying the Cultural Development requirement to residential projects based on community feedback. In contrast, 30 of 36 cities in LA County do apply their percent for arts fees to multi -unit residential development. The 1% and no cap recommendations are standard for percent for art ordinances. Twenty-nine of 36 cities have 1% fees and only four cities have caps on contributions ranging from $50,000- $750,000 (Azusa, Calabasas, Downey, and Redondo Beach). Construction Fee Comparisons The Department of Planning and Building Safety also researched how El Segundo's current fees for commercial construction compared to fees in neighboring communities, and determined fees in other cities were significantly higher (double or triple the cost of El Segundo depending on building valuation). Most of the cities have adopted Percent for Arts ordinances as well. The table below compares El Segundo's rates for plan checks and permits versus the fees charged by nearby cities. Note El Segundo's fees are 49% lower for $500,000 projects, 68% lower for $1,000,000 projects, and 66% lower for $10,000,000 projects. Comparison of Plan Check and Permit Fees by City Project valuation $500,000 $1M $5M $10M El Segundo $5,797 $10,368 $30,648 $55,998 Los Angeles $9,068 $17,370 $69,895 $135,552 Manhattan Beach 10,670 18,385 66,059 96,672 Glendale 10,665 20,325 76,445 146,595 Culver City 12,565 23,575 108,955 216,055 Torrance 13,504 23,684 118,324 236,628 Percent Over El Segundo's Fees Los Angeles 56% 68% 128% 142% Manhattan Beach 84 44 116 73 Glendale 84 96 149 162 Culver City 117 127 256 286 Torrance 133 128 286 323 251 Cultural Development Proo•am Aunlicahilily and Exceptions Development projects to be subject to the Ordinance in El Segundo are limited to new commercial and industrial developments on private property, or additions or modifications to existing commercial and industrial buildings on private property, with a cumulative building valuation of at least $2 million. Commercial components in a mixed-use residential -commercial development project are subject to the Ordinance; residential components are exempt. Exemptions also are provided for certain commercial and industrial projects from the requirements of the Ordinance, such as renovations or rehabilitation required for seismic safety or for compliance with the Americans with Disabilities Act and replacement, repair, renovation, or rehabilitation to an existing building partially or completely destroyed by a fire or natural disaster up to the original building valuation. Cultural Develoument Program Administralion The Cultural Development Program Review Process for on-site developer projects will be collaborative with the goal of developing the best possible art for the project and the community at large. The art must be an integral part of the development project and the artist should be included as a member of the project design team. Approval will be a two -Part Process: ■ Step 1: Public Art Plan must be presented to the Arts and Culture Advisory Committee for approval. • Step 2: Final review and approval by staff is needed prior to the issuance of a Certificate of Occupancy Maintenance of the art will be the responsibility of the developer and its successors for the lifetime of the building or the length of time as approved by the City. The Cultural Development Fund will be a Special Expenditure Account administrated by the Library Services Department in coordination with the Finance Department, Department of Planning and Building Safety, and Department of Public Works. The ACC will propose an annual budget to be considered and approved by the City Council each year during the regular budget process. Recommended expenditure categories will include funding for artistically enhanced capital projects, permanent art, community experiences, grants, maintenance, and public art consultants. Approval of any contracts to be paid by the Cultural Development Fund will comply with the City's current purchasing limits, i.e., the City Council will approve any contracts for services or goods in excess of $50,000 per fiscal year (ESMC § 1-7A-5). Legal 5landardlEnvironmental Comnlfance Public art requirements and in -lieu fees constitute permissible development standards that are the City's lawful exercise of its traditional planning and zoning police power. Such an in -lieu fee is not a development impact fee that is subject to the California Mitigation Fee Act. (Ehrlich v. City of Culver City (1996) 12 CalAth 854.). This means that unlike other types of development 252 impact fees that must satisfy a "nexus" requirement, to impose an art "in lieu" fee, the City must only demonstrate that the fee is reasonably related to a constitutionally permissible public purpose. (Cal. Bldg. Industry Assn. v. City of San Jose (2015) 61 CalAth 435). The proposed ordinance is exempt from further environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.), because it can be seen with certainty that there is no possibility that the proposed ordinance will have a significant effect on the environment Conmliance with Toninz Reauire117e71S If a civic art installment is to be provided to satisfy the Cultural Development Fund requirement, compliance with the requirement does not exempt the civic art project from all applicable City regulations. CONCLUSION For the foregoing reasons, staff respectfully recommends that the City Council adopt the proposed ordinance. If the City Council introduces the proposed ordinance, the ordinance will then be scheduled for a second reading. If the ordinance is then adopted, it will take effect January 1, 2020. Administrative Guidelines for the Cultural Development Program will be promulgated by staff and approved by the City Manager. 253 ORDINANCE NO. AN ORDINANCE AMENDING TITLE 15 (ZONING REGULATIONS) OF THE EL SEGUNDO MUNICIPAL CODE ESTABLISHING A PUBLIC ART OR IN -LIEU FEE REQUIREMENT AND A CULTURAL DEVELOPMENT FUND The City Council of the City of EI Segundo does ordain as follows: SECTION 1: The City Council finds and declares as follows: A. Courts have recognized a public art requirement as a lawful exercise of a city's traditional planning and zoning police power; such a requirement for either public art or in -lieu fees are not a development impact fee that is subject to the California Mitigation Fee Act, but instead is considered a development standard allowed by the City's zoning and police powers, provided the requirement is reasonably related to a constitutionally permissible public purpose (Ehrlich v. City of Culver City (1996) 12 CalAth 854; Cal. Bldg. Industry Assn. v. City of San Jose (2015) 61 CalAth 435); B. The City of EI Segundo is 5.46 square miles and has distinct areas throughout the City that are zoned for commercial and industrial uses, including the Downtown area, Smoky Hollow, and the portion of the City east of Pacific Coast Highway. Because the City is surrounded by other cities (Manhattan Beach, Hawthorne), the Los Angeles International Airport and the Pacific Ocean, and because the City is almost entirely built out, existing opportunities to expand public art within the community are scarce; C. As commercial and industrial development and revitalization of the real property within the City continues, urbanization of the community results, and the need to develop new artistic and cultural resources to enhance the environment, image, and character of the City increases; D. Cultural and artistic resources enhance the quality of life for individuals living in, working in, and visiting the City; public art increases cultural awareness, stimulates imaginations and provokes creative dialog among community members; E. The development of artistic and cultural resources promotes the general welfare of the community, by preserving and improving the quality of the urban environment, increasing property values, and resulting in a positive economic output; F. Artistic and cultural assets should be either provided or financed by those whose commercial and industrial development and revitalization increase the community's demand for cultural resources; G. The proposed public art requirement is a requirement of general application for 254 voluntary development within the City, and the optional in -lieu fee will be used for providing artwork, cultural services, performing arts and arts events to the public, as described in this ordinance; H. On December 18, 2018, the City Council directed the Arts and Culture Advisory Committee and City staff to develop a Cultural Development Fund proposal for its consideration; The Planning Commission of the City of EI Segundo held a noticed public hearing on October 10, 2019, to review and consider the staff report prepared for the project, receive public testimony, and review all correspondence received on the project; the Planning Commission reviewed and considered the proposed amendments, and adopted PC Resolution No. recommending the City Council adopt the ordinance; and On July 16, 2019, and November 5, 2019, the City Council, after giving notice thereof as required by law, held a public hearing concerning the proposed ordinance and carefully considered all pertinent testimony offered in the case. SECTION 2: General Plan and Zoning Consistency. The City Council finds as follows: A. The proposed ordinance is compatible with, and will not frustrate, the goals and policies of the City's General Plan. Furthermore, the proposed ordinance would directly advance Goal LU2 and Objectives LU2-1 and LU2-2, which seek to preserve and enhance the City's cultural resources. The proposed ordinance would also advance Objective LU2-3, which encourages the development of public programs and facilities that will meet the cultural needs of the City's various age, income and ethnic groups. The proposed ordinance is intended to require developers of industrial and commercial projects to either provide public art or pay a fee which will be used for public art and cultural activities. The proposed ordinance establishes a dedicated source of funding for projects and programs to meet and exceed the cultural needs of the City's residents. B. The proposed ordinance is consistent with the Zoning Code which recognizes works of art and establishes certain standards to distinguish them from commercial signs (ESMC § 15-18-3(H)). SECTION 3: Environmental Assessment. Based upon the findings of fact set forth in Sections 1 and 2, the proposed zone text amendment is exempt from further environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQK) and CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that there is no possibility that adoption of the proposed ordinance will have a significant effect on the environment. 2 255 SECTION 4: ESMC Section 15-1-6 (Definitions) is amended to add the following terms and definitions in alphabetical order: Section 15-1-6. Definitions. The following words and phrases, when used in this title, shall have the meanings respectively ascribed to them in this chapter: ACCESSIBLE: As pertaining to artworks, see VISIBLE AND ACCESSIBLE. APPLICANT: the owner of the property, a developer or tenant utilizing the property and seeking the required permits. ARTWORK: original creations of art which is intended for and capable of being displayed outdoors, including but not limited to, sculpture, murals, mosaic, fountains, artist -designed landscape features, streetscape features and earthworks. These categories may be realized through such mediums as steel, bronze, stained glass, concrete, wood, ceramic the and stone, as well as other suitable materials. ARTISTIC OR CULTURAL SERVICES: performances and experiences, including but not limited to performing arts, literary art, media art, arts education, art events, temporary artworks and festivals. COMMERICAL OR INDUSTRIAL DEVELOPMENT PROJECT: any project which results in the development of property in any land use categories, except for single- and multi -family residential projects designed for long-term occupancy. PROJECT COST: the total value of a project, excluding the land value, as determined by the Building Official of the City, and indicated on the building permit that is issued by the City for that project. PUBLIC PLACE: any exterior area on public or private property, which is visible to the general public as described in Section 15---6. '41 256 VISIBLE AND ACCESSIBLE: As pertaining to artworks, means freely accessible to the public for viewing at least eight hours each day of at least five days per week. SECTION 5: ESMC Title 15 (Zoning Regulations) is amended to add the following chapter: Chapter 34— Cultural Development. Section 15-34-1. Purpose. This chapter is adopted pursuant to the City's planning, zoning and police powers and may be known and cited as the "City of EI Segundo Cultural Development Ordinance." The intent of the Ordinance is to promote the public arts in the City of EI Segundo by creating a collection of visual artwork and providing artistic or cultural services, such as performing arts, literary art, media art, arts education, art events, and temporary artworks, by recognized artists, and of the highest possible quality, throughout the City, for the public's benefit. As of the effective date of this ordinance, the City shall require that certain private developments use a portion of building development funds for the acquisition of publicly -accessible artwork, or pay to the City an in -lieu fee, as a condition of project approval. Section 15-34-2. Application. This chapter shall apply to all commercial or industrial development projects where the project cost exceeds $2,000,000.00. Notwithstanding the foregoing, this chapter shall not apply to the following projects: A. Any project which consists solely of rehabilitation work required for seismic safety or to comply with government mandates, including the Americans with Disabilities Act of 1990 regardless of valuation; B. The reconstruction of structures which have been partially damaged or completely destroyed by fire, flood, wind, earthquake or other calamity; C. Any project constructed by a government agency which is constructed on property exempt from taxation pursuant to California Revenue and Taxation Code Section 214; D. Residential components of a mixed-use development project; E. Commercial and industrial development projects, or portion(s) thereof, that are designed and dedicated to performing arts or museum spaces, so long as the performing arts or museum spaces are maintained within the building, provided the premises continue to be dedicated as such. Acceptable facilities include museums, theaters, performance 4 257 arts centers, and other similar facilities. Section 15-34-3. Requirement to Provide Artwork or Pay In -lieu Fee. A. When a project is subject to this chapter, the applicant must either (a) commission or acquire and install new artwork in a location on or in the vicinity of the project site, with the appraised value of such artwork and any direct expenses as described herein being equal to or exceeding one percent of the project cost; or (b) pay to the City an amount equal to one percent of the project cost. B. For purposes of this section, direct expenses associated with the commission, acquisition or installation of the new artwork include: 1. Art valuation by public art consultant. 2. Consultation and direct administration of art selection and purchase, not to exceed 10 percent of the art requirement. 3. Insuring the art, up to the time of installation. 4. Shipping or storage of the art, up to the time of installation. 5. Preparation of the site, and actual installation. 6. Other expenses, including waterproofing, lighting, structural engineering, and additional structural support. C. Direct expenses shall not include maintenance of the installed artwork and indirect administrative costs D. Compliance with this section does not constitute a "public benefit" as that term is used in certain specific plans within the City, such as the Smoky Hollow Specific Plan. An applicant may, however, commission or acquire and install new artwork with an appraised value greater than this chapter's one percent of the project cost threshold, and such additional amount may be considered a "public benefit." Section 15-34-4. Application and Approval Process. A. Whenever an applicant proposes a project that may be subject to the provisions of this chapter, the Department of Planning and Building Safety must provide the applicant a copy of this chapter and an application form. 5 258 B. All applicants subject to this ordinance must complete and sign an application form. C. If an applicant elects to pay the in -lieu fee, no building permit shall be issued until the total fee has been paid. D. If the applicant elects to provide public art, the following provisions apply: 1. If the applicant is not the property owner, the applicant must submit a letter from the property owner, in a form acceptable to the City, acknowledging the property owner's understanding and acceptance of the property owner's responsibilities under the ordinance. 2. In order to ensure integrated projects, applicants choosing to commission or acquire and install new artwork for their project shall submit an application for the Public Art Plan to the City's Library Services staff. The application will include preliminary plans that include the proposed location of the artwork and any other documents reasonably required pursuant to the guidelines promulgated by staff and approved by the City Manager. 4. The Arts and Culture Advisory Committee shall review the completed application for the Public Art Plan and approve, approve with conditions, or deny the proposed artwork, and its proposed location, based on the "Standards for Artworks" outlined in Section 15-34-5. The committee's decision is subject to appeal pursuant to Section 15-34-8. 5. No building permit shall be issued by the Department of Planning and Building Safety unless the applicant has executed an agreement committing the applicant to complying with this Chapter and submitting an application for the Public Art Plan by a certain date. 6. No certificate of occupancy shall be issued by the Department of Planning and Building Safety unless and until (a) the application for the Public Art Plan has been approved and the artwork has been installed and complies with this Chapter and (b) the property owner executes and records with the Los Angeles County Registrar - Recorder's office, a covenant regarding the maintenance of the artwork, as required by Section 15-34-7. rl� 259 Section 15-34-5. Standards for Artworks. A. Standards for the approval, siting, and installation of artworks shall include, but are not limited to, the following criteria: 1. The artwork shall be displayed in an area that is visible and accessible by the public, as defined in Chapter 15-2. The application shall include a site plan showing the location of the artwork, complete with landscaping, lighting and other appropriate accessories to complement and protect the artwork. 2. The composition of the artwork shall be of a permanent type of material in order to be durable against vandalism, theft, and weather and requiring a low level of maintenance. 3. The artwork shall be designed and constructed by an artist experienced in the production of such artwork and recognized by critics and by the artist's peers as one who produces works of art. 4. The artwork shall be permanently affixed to the property. 5. The artwork's concept and design must be compatible with the site's environment and function. B. The following items are not to be considered as works of art: 1. Art objects which are mass produced from a standard design, such as playground equipment or fountain pieces; 2. Reproductions of original artworks, unless it is incorporated into an original artwork or a limited edition; 3. Decorative, ornamental or functional elements which are designed by the building architect as opposed to an artist commissioned for the purpose of creating the artwork; 4. Landscape architecture and landscape gardening unless such elements are designed or approved by the artist and are an integral part of the artwork by the artist; 5. Services or utilities necessary to operate or maintain the artwork; 6. Directional elements such as super graphics, signs or color coding, except where these elements are integral parts of the original artwork or executed by the artist in unique or limited editions; 7 260 7. Artwork that incorporates logos, images, text or other elements that refer or relate to a business or organization's name, branding or marketing themes; 8. Architectural rehabilitation, historic preservation and structural building modifications. Section 15-34-6. Maintenance and Repair of Artworks. A. The artwork installed on private property pursuant to this chapter shall be and remain the property of the property owner. B. Artwork installed on City property shall be the property of the City. C. The artwork and its setting shall be maintained by the property owner in good repair and in a safe, functional, accessible, and clean condition, all in a manner acceptable to the City. Before the issuance of the certificate of occupancy for the project, the property owner shall execute and record with the Los Angeles County Registrar -Recorder's office, a covenant approved by the City Manager, and in a form approved by the City Attorney, providing, among other things that the property owner and its successor and assigns shall maintain the artwork as required by this section. The property owner may assign the obligations of this Subsection to the applicant without having to first obtain the prior approval of the City. D. In the event repair of the artwork is required, the artist who created it shall be given the first opportunity to do that work for a reasonable fee. In the event the artist is unable or unwilling to do so, the City or the property owner may proceed to contract for such repair with another qualified artist. E. In the event the City declares the artwork a public nuisance pursuant to Chapter 7-1, the property owner must promptly abate the nuisance. Section 15-34-7. Cultural Development Fund. A. There is hereby created a fund to be known as the "Cultural Development Fund." Any moneys collected in accordance with the provisions of this chapter shall be deposited into the fund. The fund shall be administered by the City of EI Segundo's Director of Finance. B. The City Manager or designee shall provide an annual accounting to the City Council regarding the use of all fees collected and deposited in the Cultural Development Fund, including identification of all expenditures and balances during the prior fiscal year and recommendations for expenditures for the subsequent fiscal year. D 261 C. The Fund shall be used to provide art in public places in order to further the intent and purpose of this chapter. Expenditures of funds shall be limited to the following uses: 1. For the design, acquisition, commission, installation, improvement, relocation, maintenance, conservation, restoration, utility charges, and insurance of artwork; 2. To sponsor or support artistic or cultural services; 3. For the City's costs of administering the Cultural Development Fund and associated programs. D. The City Council may request the Arts and Culture Advisory Committee to make recommendations to City Council for expenditures from the Cultural Development Fund in accordance with this chapter. E. Endowments. The Fund shall also be used as a depository for monetary endowments, bequests, grants or donations made for public arts purposes. Such sums may be expended as set forth in this chapter. Section 15-34-8. Appeal. Any person may seek review of a decision by the Building Official or the Arts and Culture Advisory Committee. Appeals of the Building Official's decision must be made pursuant to Section 113.3 of the California Building Code, as amended by Section 13-1-2 of this Code. Appeals of a decision of the Arts and Culture Advisory Committee must be made by filing a written appeal with the City Clerk's Office within 10 working days of the Committee's decision and pay an appeal fee. The City Council shall hold at least one hearing on the Arts and Culture Advisory Committee's decision and the hearing shall be held within 40 calendar days of the appeal request. The City Council may affirm, reverse or modify a decision of the Committee and the decision of the City Council shall be final. Section 15-34-9. Administrative Guidelines. Administrative Guidelines for implementation of this program shall be promulgated by staff and approved by the City Manager. Section 15-34-10. Violations. In addition to other fines or penalties provided by law, the City may revoke or suspend any discretionary permit granted to any applicant who violates any provision of this chapter. 0 262 SECTION 6: CONSTRUCTION. This ordinance must be broadly construed in order to achieve the purposes stated in this ordinance. It is the City Council's intent that the provisions of this ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this ordinance. SECTION 7: ENFORCEABILITY. Repeal of any provision of the EI Segundo Municipal Code does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this ordinance. SECTION 8: VALIDITY OF PREVIOUS CODE SECTIONS. If this entire ordinance or its application is deemed invalid by a court of competent jurisdiction, any repeal or amendment of the ESMC or other city ordinance by this ordinance will be rendered void and cause such previous ESMC provision or other the city ordinance to remain in full force and effect for all purposes. SECTION 9: SEVERABILITY. If any part of this ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this ordinance are severable. SECTION 10; The City Clerk is directed to certify the passage and adoption of this ordinance; cause it to be entered into the City of EI Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this ordinance, cause it to be published or posted in accordance with California law. all 263 SECTION 11: This Ordinance will become effective on the thirty-first day following its passage and adoption. PASSED AND ADOPTED this day of , 2019. ATTEST: Drew Boyles, Mayor STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Tracy Weaver, City Clerk of the City of EI Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. was duly introduced by said City Council at a regular meeting held on the day of , 2019, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the day of 2019, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Tracy Weaver, City Clerk APPROVED AS TO FORM: Mark D. Hensley, City Attorney 11 264 RESOLUTION NO. 2875 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF EL SEGUNDO RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE AMENDING TITLE 15 (ZONING REGULATIONS) OF THE EL SEGUNDO MUNICIPAL CODE ESTABLISHING A PUBLIC ART OR IN -LIEU FEE REQUIREMENT AND A CULTURAL DEVELOPMENT FUND. Environmental Assessment No. 1268 and Zone Text Amendment No. 19-10 The Planning Commission of the City of EI Segundo does resolve as follows: SECTION 1: The Planning Commission finds and declares that: A. Courts have recognized a public art requirement as a lawful exercise of a city's traditional planning and zoning police power; such a requirement for either public art or in -lieu fees are not a development impact fee that is subject to the California Mitigation Fee Act, but instead is considered a development standard allowed by the City's zoning and police powers, provided the requirement is reasonably related to a constitutionally permissible public purpose (Ehrlich v. City of Culver City (1996) 12 CalAth 854; Cal. Bldg. Industry Assn. v. City of San Jose (2015) 61 CalAth 435); B. The City of EI Segundo is 5.46 square miles and has distinct areas throughout the City that are zoned for commercial and industrial uses, including the Downtown area, Smoky Hollow, and the portion of the City east of Pacific Coast Highway. Because the City is surrounded by other cities (Manhattan Beach, Hawthorne), the Los Angeles International Airport and the Pacific Ocean, and because the City is almost entirely built out, existing opportunities to expand public art within the community are scarce; C. As commercial and industrial development and revitalization of the real property within the City continues, urbanization of the community results, and the need to develop new artistic and cultural resources to enhance the environment, image, and character of the City increases; D. Cultural and artistic resources enhance the quality of life for individuals living in, working in, and visiting the City; public art increases cultural awareness, stimulates imaginations and provokes creative dialog among community members; E. The development of artistic and cultural resources promotes the general welfare of the community, by preserving and improving the quality of the urban environment, increasing property values, and resulting in a positive economic output; 265 F. Artistic and cultural assets should be either provided or financed by those whose commercial and industrial development and revitalization increase the community's demand for cultural resources; G. The proposed public art requirement is a requirement of general application for voluntary development within the City, and the optional in -lieu fee will be used for providing artwork, cultural services, performing arts and arts events to the public, as described in this ordinance; H. On December 18, 2018, the City Council directed the Arts and Culture Advisory Committee and City staff to develop a Cultural Development Fund proposal for its consideration; and The Planning Commission of the City of EI Segundo held a noticed public hearing on October 10, 2019, to review and consider the staff report prepared for the project, receive public testimony, and review all correspondence received on the project. SECTION 2: General Plan and Zoning Consistency Findings. As required under Government Code § 65454 the proposed amendment is consistent with the City's General Plan as follows: A. The proposed ordinance is compatible with, and will not frustrate, the goals and policies of the City's General Plan. Furthermore, the proposed ordinance would directly advance Goal LU2 and Objectives LU2-1 and LU2-2, which seek to preserve and enhance the City's cultural resources. The proposed ordinance would also advance Objective LU2-3, which encourages the development of public programs and facilities that will meet the cultural needs of the City's various age, income and ethnic groups. The proposed ordinance is intended to require developers of industrial and commercial projects to either provide public art or pay a fee which will be used for public art and cultural activities. The proposed ordinance establishes a dedicated source of funding for projects and programs to meet and exceed the cultural needs of the City's residents. B. The proposed ordinance is consistent with the Zoning Code which recognizes works of art and establishes certain standards to distinguish them from commercial signs (ESMC § 15-18-3(H)). SECTION 3: Environmental Assessment. Based upon the findings of fact set forth in Sections 1 and 2, the proposed zone text amendment is exempt from further environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQK) and CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that there is no possibility that adoption of the proposed ordinance will have a significant effect on the environment. SECTION 4: Recommendation. The Planning Commission recommends that the City Council adopt the ordinance set forth in attached Exhibit A, which is incorporated into this resolution by reference. 2 266 SECTION 5: Reliance on Record. Each and every one of the findings and determination in this Resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the Planning Commission in all respects; and SECTION 6: Limitations. The Planning Commission's analysis and evaluation of the project is based on information available at the time of the decision. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. In all instances, best efforts have been made to form accurate assumptions. SECTION 7: The Commission secretary is directed to mail a copy of this Resolution to any person requesting a copy. SECTION 8: This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded. PASSED, APPROVED AND ADOPTED this 10th day of October, 2019. ATTEST: Sam Lee, Secretary M Ryan Baldino, Chairperson City of EI Segundo Planning Commission Baldino Newman Hoeschler Keldorf Wingate APPROVED AS TO FORM: Mark D. Hensley, City Attorney David King, Assistant City Attorney 3 267 I I Percent forArt/Art in Public Places Ordinances Jurisdictions within Los Angeles County September 2018 Cities within Year Code Citation Percent ResfdqntlaL Buildjng, Hard and/or Admin LA County1. Ordinance �- (Chapter) i Development I Valuation Programmatic Experidityte AckAted Included Threshold Art 'Cap Alhambra 2001, updated 23.81 Subject to City Yes, 5+ units; $500,000 Hard - 2012 Council affordable resolution housing exemot Azusa 2009 88.39 1% to Yes, B+units $750,000 Hard 10% to maximum cap { consultation $50,000 I fee Baldwin Park 2004 154 1% Yes, 4+ units; $50,000 Hard - affordable housing exempt Bellflower 20053.32 I I 1% Yes, 2+ units I Res $500,000 Hard CA 5250,000 I Beberly Hills 1996, updated 3.1-801 at seq Tiered No $500,000 Hard Permit fees, 2015 1% first 1 consultation million, plus fees, travel, 1,5% over 1 prep work do million not count towards % Burbank 2008, updated 10-1-1114 Tiered Yes. MFR $1.5 Hard—onsite 10% to 2011 1% first $15 Subdivisions million Both with in- consultation/ million, plus under 30 units, C/I $500,000 Ileu fee management 0.75% $15.1- affordable/SC fee $25 million, housing plus exempt 1 0.50% above $25 million Calabasas 2010 17.24 1% to No 7 Hard maximum cap 01`5150,000 Carson Last update 9138.17J.S.o 1% Mixed use only All projects In 7 ? 2011/2014 and MU over 9137.18J.1.m 25,000 sf — for Carson No Street Mixed requirements, Use Zone Only lust guidelines Cerritos 2000, updated 22.94 1% Yes, 4+ units $250,000 Hard - 2001 Claremont 20057, 16.148 1%-C/I, CIP Yes, 2+ units or $150,000 CIP Both? 20% of Fund updated 2014 0.5% Res subdivisions $250,000 CA for Admin cost with S+ lots 5250.000 Res Commerce 2015 1931, Div. 23 1% Yes, 4+ units 5250,000 Hard - Culver City 1988, updated 15.06 1% Yes, 5+ units; $500,000 new Both but 15% of Fund 2013 (<$75,000 in- Affordable/sc $250,000 excluding for lieu only, housing remodels performances maintenance, 475,000 have exempt and 15% of options) Fund for Admin cart E Downey 2005, updated VIII -10 Sec 1%, up to Yes, 4+ units $500,000 Hard 2012 8950 et seq SSS0.000 EI Monte 2006, updated 15.07 1% Yes, 4+ units $500,000 C/1 Hard 2016 Res —4+ units Glendale 2010 30.37 1% for in -lieu Yes, 3+ units in $500,000 Both 2% actual art commercial and mixed-use zones only (Affordable housing exemot) 2 269 i Huntington 2005 9-3.1701 et 1% Yes, 2+ units; $100,000 new Hard on-site, - Park seq affordable /sc $50,000 Both with housing remodels funds exempt Ingrewood 2004, updated f Art 14, 11-140 I 1% No $250,000I Hard - 2013 I etseq I Los Angeles 1989, 1991 Admin Code Based on No $500,000 Both - 22.118,91- square footage 107.4.6 (0.39-1.57 sf depending on use) Lynwood 2006 11-20 1.5% Yes $100,000 Hard 15% Admin Cost 10% Maintenance MalibuI 2014 1759 f 2% on-site I Yes, 4+units $250,000 Hard Hard + - I 1% in -lieu J I ManhattanI 2002 1090 1% Yes, 4+ units $500,000 new ?for on-site; 20% Admin Beach I I I $250,000 I Both for In -lieu I cost remodels Monrovla 2004, updated 15.44 1% Yes, 5+units; $1,000,000 Hard Part of%can 2017 affordable go to library housing Fund instead exempt Norwalk 2014 I 15.44 1% Yes. 4+units $500=0 Hard Paramount 11993, uu18dated I By resolution 1% Yes, S+ units $100,000 Both ` I I Pasadena 2002 and 17.40.100 1% Yes, only in 25,000 sq ft for Both 25% Admin 2007, updated two districts C/I/M%D, cost 2017 (3+ units) except $500,000in two districts Pomona I 2011 I .5809-24 1% ! Yes, 30+ units 1 $750,000 I Hard 3 270 Redondo 2015 10-6 1%, up to ' Yes, 3+ units $250,000 Hard 5% for Beach $750,000 maintenance Rosemead 2013 17.92 Required, but No (only All projects Hard no specific regional regardless of amount commercial value zone) Santa Fe 2000, updated 38.40 et seq Under $2 Yes $300,000 Hard Springs 2014 million, 1% In - lieu only Over $2 million, 1% on- site or In4ieu Santa Monica 2006 9.04.10.20 2% for on-site, Yes, 5+units 7500sffor Hard+cultural 1%x total newcomm, facility project sq ft — 25,000 sf for as established remodels, by resolution 5+ units for new res i Sierra Madre 2006 17.90 1% Yes, 4+ units $250,000 Hard - 20061 + CPI South Gate 2000, updated 11.32 1% Yes, 5+ units $500,000 new, Hard - 2015 $250,000 remodels West Covina 2004, updated 17-31 et seq 0.5% Yes, 10+ units-, $500,000 new Hard 2008 (Article li) Residential affordable/sc non -res, (Funds can be 1% Others housing 5+ units res, used for both) exempt $250,000 non - res remodels West 2001 19.38 1% Yes, 3+units; $200,000 Not stated or Hollywood affordable defined housing exempt Westlake 2006 9.39 1%on-slte No $100,000 Hard Vlllaee 1.25% in -lieu 4 271 1 I Whittier 1993, updated 1998 1752 0.5% or Yes, 3+ units $250,000 Hard $20,000—on- site 0.5% in -lieu TOTAL36 Jurisdictions Yeas Code Citatioff- Percent Rgsideritial adilding Hard and/or Admin outsigeLi Ordinance JChapterj Development'. 'llaldation Programmatic Expenditure county Adoptdd Inchtdea Threshold Art. Cap City of San 2004, updated Article 6, 1% for on-site, No $5 million Both 1596foradmin Diego 2008 Division 7, 0.5% in -lieu costs, or 20% If Section through RFP 26.0701 etseq process City of Palo 2013 16.61 1% Yes, S+ units $200,000 and Both - Alto >10,000 squarefeet City of 2014 15.70 0.5% Yes, 20+ units 2,000 square Hard Oakland Residential, 1% feet for Nonresidential nonresidential 20 units for residential city and 1985, updated Section 429 of 1% Yes, only in C-3 Commercial Hard Downtown County of San 2012 the Planning Zone projects over area only Francisco Code 25,000square feet in certain zones/zoned districts Cltyof 2017 Zoning -15.04, 1% Yes, 10+unIts $500,000 Both Richmond Public Works — 12.62 5 272 d I City of San 2005 23.60 0.5% Yes, multi- $3 million Not Stated _ Mateo family residences City of 2016, 23C.23 1.7%on-ske Yes, S+units; 5+ units, all Hard Berkeley amended 2017 0.8% In -lieu affordable and new (In Guidelines) transitional construction, housing and additions exempt of10,000+SF for commercial and industrial City of Dana 1994, 9.05.240 0.5% Yes, S+ units $1 million Hard, but can - Point amended 2010 construct space for use of performance art City of 1991, 3-2.401 et seq. 1% non- Yes, 20+ units $300,000 for Not Stated Emeryville amended 1992 residential nonresidential (refer to and 2009 0.5% 20+ units for Guidelines) residential residential City of 2017 Chapter XXX, 1% Yes, 5+ units; $250,000 Both 25% cap to be Alameda Article VIII affordable spent on (30-98) housing and programmatic nonprofit art development projects exempt TOTALIO TOTAL ALL JURMDIC7iONS. 46 6 273